The University of Toledo University Transportation Center

Focus Area: Infrastructure Utilization

Principal Investigator:

Dr. Hokey Min
James R. Good Chair in Supply Chain Strategy
Department of Management
College of Business Administration
Bowling Green State University, Bowling Green, Ohio
419.372.3442
hmin@bgsu.edu

Project Dates: 07-01-2010 – 06/30/2011; no cost extension to 12/31/2011

UT-UTC Designation: UTUTC-IU-20

Abstract:

In 2002, firms owned by African-Americans in the U.S. totaled 1.2 million, hiring more than 756,000 paid employees. These African-American owned firms generated $88.6 billion in revenues and accounted for 5.2% of all U.S. nonfarm businesses (http://www.inc.com/encyclopedia/minority-owned-businesses.htm). Between 1997 and 2002, the number of African-American owned firms have grown by 45.5%, a rate much higher than the national average for all businesses (10.3%). Despite their steady growths and the introduction of “set-aside” programs/Affirmative Actions, African-American owned firms often faced stiff business challenges. These challenges include a lack of business networking opportunities, limited financial resources, and prejudices against minority management styles. Some of these challenges led many African-American firms to focus on their own niches in the service sector including the trucking industry. In particular, the trucking industry characterized by a thin profit margin and cut-throat competition poses additional challenges for African-American owned trucking firms. To help African-American owned trucking firm remain competitive in the trucking industry, this project will investigate why they lag behind their white-owned counterparts in sales, profits, employments, and market shares, while assessing the impacts of community supports, Affirmative Actions, and supplier diversity programs on their business successes. In addition, this project will identify best-case practices performed by a successful African-American owned trucking firm such as Swift and a shipper such as Ford which better utilized African-American owned motor carriers based on its supplier diversity program. Furthermore, this project proposes a viable business strategy which will create “win-win” situations for both African-American owned trucking firms and their shippers in this Northwest Ohio region.

UT-UTC Grant Amount              $25,000
Match Amount                          $25,000
Total Project Budget                $50,000